https://www.taxtmi.com/caselaws?id=340557 A performance bond styled as a performance guarantee was treated as a contract of guarantee, not indemnity, because the instrument and the surrounding contractual scheme showed distinct obligations and required the bank to pay on demand without reference to the contractor. The use of words such as "indemnify" in one clause did not alter the overall character of the document. The guarantee was also held to be unconditional and irrevocable, making the bank's liability autonomous and enforceable on demand. In the absence of fraud or special equities, the court declined to restrain encashment. en-us Wed, 22 Mar 2017 00:00:00 +0530 Thu, 23 Mar 2017 09:10:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340557 A performance bond styled as a performance guarantee was treated as a contract of guarantee, not indemnity, because the instrument and the surrounding contractual scheme showed distinct obligations and required the bank to pay on demand without reference to the contractor. The use of words such as "indemnify" in one clause did not alter the overall character of the document. The guarantee was also held to be unconditional and irrevocable, making the bank's liability autonomous and enforceable on demand. In the absence of fraud or special equities, the court declined to restrain encashment. Case-Laws Companies Law Wed, 22 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340557